News release

Yahoo! and Compaq Announce Comprehensive, Global Technology and Marketing Alliance

Compaq Chosen as Technology "Power" Behind Yahoo!

Compaq to Promote Products and Services Through Broad Yahoo! Fusion Marketing Program

Yahoo! Inc. (Nasdaq: YHOO), a global Internet commerce, communications and media company, and Compaq Computer Corporation (NYSE: CPQ), a global provider of technology and solutions, today announced a multi-year agreement making Compaq the preferred Internet infrastructure provider to Yahoo! and representing a substantial commitment by Compaq to advertise and market its products and services throughout the Yahoo! network of properties.

Under the terms of the agreement, Yahoo! has selected Compaq as its preferred provider for industry-standard and high-performance servers, host-attached storage, desktops, laptops, handhelds and related professional services. Compaq will provide a substantial portion of Yahoo!'s Internet infrastructure and "power" the most heavily visited sites on the Yahoo! network.

Compaq is marketing its brand, products and services through a comprehensive Yahoo! Fusion Marketing program across Yahoo!'s global network. Compaq's broad promotional program includes multiple media tools across Yahoo!'s domestic properties and also in top worldwide markets such as Canada, France, Germany and the United Kingdom.

Compaq also is participating in Yahoo! Full Service, an interactive suite of data-driven tools and services that will provide Compaq with detailed targeting and ongoing analysis of its marketing program. Compaq's online store is also a featured merchant in Yahoo! Shopping, the Web's No. 1 portal shopping destination (Nielsen//NetRatings, December 2000), providing Compaq with premier placement on the Yahoo! Shopping home page as well as throughout various category pages. Through this extensive Yahoo! Fusion Marketing campaign, Compaq will aggressively market its "Inspiration Technology" campaign to Yahoo!'s global audience.

"By choosing to work with Compaq, we are entering into a broad relationship that leverages the combined strengths of our leading brands to provide an optimal experience for users. Compaq's award-winning Internet infrastructure solutions will take Yahoo! to the next level in supporting our vast network," said Tim Koogle, chairman and chief executive offer, Yahoo!. "In addition, Compaq's deeply integrated Yahoo! Fusion Marketing program and Yahoo! Full Service data targeting and analysis will enable Compaq to connect in a meaningful way with Yahoo!'s global audience."

"This agreement teams two of the Internet's most powerful players," said Michael Capellas, Compaq chairman and chief executive officer. "We are very pleased that Yahoo! selected Compaq to help build and maintain its Internet infrastructure. As a premier site on the Internet with more than 180 million monthly users, Yahoo! requires global delivery of the industry's most reliable and scalable infrastructure solutions. This alliance with Yahoo, coupled with similar sized "powered by" agreements with other leading Internet properties, clearly indicates that Compaq is the technology vendor of choice for the most powerful and popular Web companies.

"In addition, the Yahoo! global network is a pervasive platform to market the Compaq brand and our industry-leading Internet technology and solutions—from the most powerful servers to the coolest Internet access products like the iPAQ Pocket PC," Capellas said.

Yahoo! Fusion Marketing allows companies to find any audience, connect with anyone, and sell anything. Yahoo! Fusion Marketing is an integrated set of sales and marketing tools built on Yahoo!'s superior environment and huge global audience. Yahoo! Fusion Marketing consists of innovative interactive marketing programs designed to provide one-stop shopping for companies seeking to secure a measurable Internet presence.

About Yahoo!

Yahoo! Inc. is a global Internet communications, commerce and media company that offers a comprehensive branded network of services to more than 180 million individuals each month worldwide. As the first online navigational guide to the Web, http://www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach. Yahoo! is the most recognized and valuable Internet brand globally, and is ranked the No. 38 leading consumer brand worldwide. The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients. These services include Corporate Yahoo!, a popular customized enterprise portal solution; audio and video streaming; store hosting and management; and Web site tools and services. The company's global Web network includes 24 world properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif.

About Compaq

Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing systems in the world. Compaq designs, develops, manufactures, and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, and communications products, commercial desktop and portable products, and consumer PCs.

Compaq products and services are sold in more than 200 countries directly to businesses, through a network of authorized Compaq marketing partners, and directly to businesses and consumers through Compaq's e-commerce Web site at http://www.compaq.com. Compaq markets its products and services primarily to customers from the business, home, government, and education sectors. Customer support and information about Compaq and its products and services are available at http://www.compaq.com.